(Updates at market close)

* TSX ends up 0.3% at 35,389.58

* Materials group adds 2.2% as gold rises

* Energy falls 2% as oil settles 5.8% lower

* Gildan Activewear ( GIL ) tumbles 18.7%

By Tharuniyaa Lakshmi and Fergal Smith

June 16 (Reuters) - Canada's main stock index rose to a

record high on Tuesday, led by gains for financial and metal

mining shares, as a drop in oil prices reduced concerns about

the inflation outlook.

The Toronto Stock Exchange's S&P/TSX Composite index

ended up 113.94 points, or 0.3%, at 35,389.58,

eclipsing the record closing high it posted on Monday.

* Details began to emerge of the interim deal reached to end

the Iran war, with U.S. President Donald Trump saying it will

rule out a nuclear weapon for Iran and a U.S. official saying it

allows Iran to sell oil upon signing.

* "The Middle East conflict deal is definitely supporting

markets, and the rally is based on hopes that a final signing

will happen," said Allan Small, senior investment advisor at

Allan Small Financial Group with iA Private Wealth.

* "The price of oil is falling quite rapidly, and if there

is some sort of deal, I anticipate it going back to where it was

before the conflict," Small said.

* U.S. crude oil futures settled 5.8% lower at $76.05

a barrel on optimism that the deal would allow oil to flow

through the Strait of Hormuz.

* The materials index, which includes metal

mining shares, rose 2.2% to a two-week high.

* Shares of SSR Mining Inc jumped 10.2% after the company

announced that its Board of Directors has approved an additional

$500 million for share repurchases and the reinstatement of a

regular quarterly dividend.

* The price of gold increased 0.6% as easing

inflation fears reduced expectations for Federal Reserve

interest rate hikes.

* The U.S. central bank is expected to leave its policy rate

in the 3.50%-3.75% range on Wednesday.

* Heavily weighted financials rose 0.8%.

* Energy and technology were among the

sectors that lost ground, losing 2% and 1.3% respectively.

* Shares of Gildan Activewear ( GIL ) tumbled 18.7% after

Jehoshaphat Research said it is shorting the apparel maker's

stock, contributing to a 2.8% decline in the consumer

discretionary sector.